Professional Documents
Culture Documents
Team members
Name Roll No
1. Muhammed Ibrahim.C 21
2.Pooja.S.Shah 39
3.Ali Asgar 2
4.Vineet 47
5.Aabid 10
COST
OTHER EXPENSES
MATERIALS LABOUR
DIRECT INDIRECT
DIRECT INDIRECT INDIRECT
DIRECT
OVERHEADS
SOH DOH
FOH AOH
MATERIAL:
The substance from which the finished
product is made is known as material.
DIRECT MATERIAL
DIRECT LABOUR
DIRECT EXPENSES
PRIME COST
FACTORY OVERHEADS
FACTORY COST
OFFICE OVERHEADS
COST OF PRODUCTION
SELL & DIST OVERHEADS
COST OF SALES
PROFIT
SALES
COST SHEET - ADVANCED
OPENING STOCK OF RAW MATERIALS
+PURCHASES
+CARRIAGE INWARDS
-CLOSING STOCK OF RAW MATERIALS
PRIME COST
+FACTORY OVERHEADS
+OPENING STOCK OF WIP
-CLOSING STOCK OF WIP
FACTORY COST
(CONT.)
FACTORY COST
+ADMINISTRATIVE OVERHEADS
COST OF PRODUCTION
+OPENING STOCK OF FINISHED GOODS
-CLOSING STOCK OF FINISHED GOODS
COST OF SALES
+PROFIT
SALES
Methods of costing
1. Job costing Eg: printing
2. Contract costing Eg: Construction of roads
3. Batch costing Eg: Bakery
4. Unit costing Eg: Brick making
5. Process costing Eg: Paint
6. Operating costing Eg: Bus service
7. Multiple costing Eg: car Manufacturing
Benefits of cost sheet
Guide for pricing decisions
Base for cost control
Ease in calculation of per piece cost
Deals with monetary as well as non-monetary
Provide valuable information about plants &
machinery
THANK YOU